Medco Energi to Take 10% Stake in Four Eni Oil and Gas Blocks in Indonesia

ENERGY - JAKARTA, Oct 12 - Indonesian energy company PT Medco Energi Internasional has reached an agreement with Italian explorer Eni to take a 10% participating interest in four oil and gas blocks in the Kutai Basin, East Kalimantan, Medco said on Monday.

The four oil and gas blocks included Muara Bakau, Ganal, West Ganal, and East Ganal which are currently operated by Searah, a joint venture energy company formed by Eni and Malaysia's Petronas, Medco said in a statement.

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The acquisition includes production, development and exploration assets, including the recently announced giant Geliga gas field which is estimated to have 5 trillion cubic feet of gas and 300 million barrels of condensate.

"This transaction complements our existing Indonesian portfolio and expands our presence into an established LNG value chain," said Ronald Gunawan, Medco Energi's CEO.

Separately, Pertamina Hulu Energi, the upstream unit of Indonesian state energy firm Pertamina, said in a statement that it signed a deal with Eni in October to acquire stakes in three oil and gas blocks in East Kalimantan.

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Following the transaction, the company would have a 10% participating interest in the North Ganal and Rapak blocks, and a total 25% participating interest in the East Sepinggan block.